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Fall 2010 Subsidence and Geologic Field Observations <br />Box Canyon, Apache Rocks, and South. of Divide Mining Areas <br />is This location (E-seam overburden depth of 1,250 feet) continues to reveal cracks (Figure 1) that <br />are sub-parallel to the outer edge of the pad (likely resulting from differential settlement of the <br />rather large amount of fill placed at this location). A comparison photograph (Figure 2) taken <br />during the fall 2009 field visit shows what the pad had looked like after regrading on the <br />downhill side of the pad. Given that mining of the area occurred in late 2008 and early 2009, it is <br />likely that these reoccurring cracks are the result of differential settlement and/or instability of <br />the underlying materials. <br />Figure 1. Fall 2010 northeastward view of the MDW E1-48 drill pad (Location 1) at cracks in <br />the deepest fill which are sub-parallel to the outer edge of the pad. <br />831-032.792 Wright Water Engineers, Inc. Page 7 <br />April 2011